Resource-based African Development Strategy - Partnership to Cut ...

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The foreign resource capital “trade-off”In order to rapidly acquire the requisite capital and skills,African states have generally opted to realise their resourceendowments through attracting foreign resource companies(TNCs & JRCs), rather than mainly relying on domestic capital.However, this “trade-off” comes with several possible “threats”:1.TNCs often have global purchasing departments which are lesslikely to develop local suppliers (linkages), than would be thecase with domestic resource companies;2.TNCs tend to optimise their global processing g( (beneficiation)facilities which often denies the resource state theirdownstream opportunities;3.TNCs generally tend to locate the tech development (R&D) inOECD countries, with the requisite skills and incentives, therebydenying Africa the development of this critical side-stream streamcapacity;4.TNCs also tend to locate their high level HRD in OECD countries(often linked to their R&D university it partners), which h could denyAfrican states the development of this seminal capacity;5.In the longer term there are clearly political downsides to aresource sector dominated by foreign capital;6.Finally RADSthere is the TNC “core competence” conundrum.7.However, all of these threats can be overcome or amelioratedthrough Resource-based appropriate African actions, Development policies Strategyand interventions!
RADSFacilitation of up- and down-stream linkages1. Access to competitively priced feedstocks: Downstream: restrictore & concentrate exports? Upstream: Capital goods- steel andspecial steels (poss. for regional iron/steel production facilities);2. Access to concessionary capital: DFIs: local, regional &continental (AfDB). Venture capital funds (PPPs with TNCs?);3. Competitive currency (forex rate): Ameliorate the Dutch Diseaseby keeping windfall rents offshore and committing to long termphysical & social infrastructure (drip-feed back into economy)?4. Access to requisite skills: HRD- dedicated institutions, JV’sbetween local and foreign Universities. Short-term skills import,but with mentorships. TNC HR “indigenisation” programmes,Strategy to repatriate the huge African skills “diaspora”?5. Access to supply contracts: t Partnership with TNCs onadjudication of all tenders (ensure that equitable access for localsuppliers). Judicious use of tariffs for infant industries. Ensureforeign supplier localisation (JVs with local capital?) & techtransfer. Local content milestones?6. Access to technology: Establish resources up- and down-streamresearch facilities with TNCs (R&D PPPs) and use of resourcerents for R&D;7. Infrastructure: Establish world-class infrastructure (transport,energy, water, telecoms, etc.) for upstream and downstreamindustrial clusters (specialised “industrial development zones”).Resource-based African Development Strategy
Page 1 and 2: A Resource-basedAfrican Development
Page 3 and 4: “Africa will never be able to tra
Page 5 and 6: RADSAfrica’s Natural Resources•
Page 7 and 8: t?$1 million GDPAsian Boom:New “s
Page 9 and 10: Energy intensity follows a similar
Page 11 and 12: Oil & Gas Value ChainResources prov
Page 13 and 14: The resource curse can be avoided!
Page 15 and 16: Africa is well-endowed endowed with
Page 17 and 18: African GeologyAreas covered withre
Page 19 and 20: e.g. INGA (DRC): 45 GW of HEP at on
Page 21 and 22: Yet most Africans don’t have acce
Page 23 and 24: African FDI inflowsRADSDominated by
Page 25 and 26: Inappropriate Mineral RegimesAfrica
Page 27: Investment in Geo-knowledgeRADS•
Page 31 and 32: Africa also has significantAgri-pot
Page 33 and 34: Major River Major BasinsRADSResourc
Page 35 and 36: Although waterresources arelarge, b
Page 37 and 38: Current and potential arable land u
Page 39 and 40: Agri-potential: Possible repeat ofB
Page 41 and 42: African agricultural growth is stil
Page 43 and 44: Causing Africa to become a netagri-
Page 45 and 46: But, nutrients are being rapidly de
Page 47 and 48: Yet Africa has abundant knownfertil
Page 49 and 50: Africa also has important forestryp
Page 51 and 52: But, desertification isspreading…
Page 53 and 54: Agriculture should be the principal
Page 55 and 56: Thus the demand boom hasdisproporti
Page 57 and 58: Insurance and freight import values
Page 59 and 60: Resource-based African Development
Page 61 and 62: NEPADSpatial DevelopmentProgramme(S
Page 63 and 64: BASIC DC METHODOLOGY: KEY ASPECTSRA
Page 65 and 66: RADSTHE DC APPROACH:What value does
Page 67 and 68: APPLICATION OFTHE SDI METHODOLOGY:S
Page 69 and 70: Mature SDP Example:The Maputo Devel
Page 71 and 72: Under implementation-The Zambezi Va
Page 73 and 74: DC Time-Line1) ID Requisite “trun
Page 75 and 76: DC Virtuous circleViable resource-b
Page 77 and 78: SDP DESK-TOP ANALYSIS:“An indicat
Page 79 and 80:
SELECTION CRITERIA & RANKINGCorrido
Page 81 and 82:
POTENTIAL SDPs INTHE 4 REGIONSRADSR
Page 83 and 84:
Niger SDP:Countries: Senegal/Gambia
Page 85 and 86:
Gulf of Guinea Coastal SDPCountries
Page 87 and 88:
Gulf of Guinea: Geology & Oil Provi
Page 89 and 90:
African oil resourcesFuture arena o
Page 91 and 92:
Bas CongoCountries: Congo Braz, DRC
Page 93 and 94:
Current RSDIP Development Corridor
Page 95 and 96:
East-West SDPs: Critical for Africa
Page 97 and 98:
Madagascar SDPCountries: Madagascar
Page 99 and 100:
Resource-basedDevelopment?Overcomin
Page 101 and 102:
APRMRADS• The African Peer Review
Page 103 and 104:
RADS• The "Equator Principles“:
Page 105 and 106:
RADSSHE: Safety, Health & Environme
Page 107 and 108:
e.g. Norwegian Global Fund• Oil &
Page 109:
Multi-layered MineralsGovernance?Na
Page 112 and 113:
Emerging global actorsRADS• Need
Page 114 and 115:
RADSWay Forward (governance)• Use
Page 116 and 117:
e.g. Iron/SteelSome SS African Oppo
Page 118 and 119:
RADSResource-based African Developm
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